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Government takes on ‘exorbitant, unethical’ KiwiSaver providers with working group legislation

December 14, 2017

Winston Peters: deputy PM

Winston Peters’ dream of a government-run KiwiSaver scheme has taken a step closer to reality with new legislation tabled yesterday to set up an “independent working group” to investigate the concept.

Drawn from the members bill ballot, the KiwiFund Bill – if passed – would establish a working group composed of “4-5 specialists across the banking, savings, and retirement fields” to nut out details of the proposal.

“It is intended that the working group would first examine the accountability of current KiwiSaver providers relating to complaints of charging exorbitant fees, unethical investments, and profiteering in the trading of Kiwisaver providers,” the draft legislation says…

“The working group would advise on setting up KiwiFund based on broad principles such as:

a lower and transparent fee structure;

a government owned and operated KiwiSaver scheme;

a requirement that profits stay in New Zealand;

preferential treatment given to New Zealand based investments;

a requirement that funds are invested in socially and ethically responsible

ways; and

the new provider be supported by a government guarantee.”

Originally proposed in 2013, the KiwiFund was one of NZ First’s 2017 election ‘bottom lines’.

The government is already the ultimate owner of one KiwiSaver scheme via the NZ Post/ACC/NZ Super subsidiary Kiwi Wealth.